Joining together to become one of the biggest food companies on the globe, Kraft and Heinz have merged together to offer an even greater array of products. What makes this move so telling about the two companies and overall consumer trends?

It’s one of the biggest mergers in recent history. Kraft Foods and Heinz have merged together and created the fifth largest food company in the world Now known and Kraft and Heinz Co., the giant is expected to become the third largest food brand in the U.S., just behind PepsiCo and Nestle.

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By overwhelming odds, the company would have a presence in nearly every American household. Products go far beyond the iconic ketchup and boxed macaroni and cheese that most people think of when they hear the two names, but for companies that both have such strong identities and a wide variety of products on the market, why have they decided to come together?


From Packaged And Processes To Fresh And Local
It may have something to do with what consumers are looking for when they head to the grocery store and how their tastes have changed just a few years ago. While Heinz and Kraft both provide products that cater to convenience, the high levels of food processing it takes to deliver that very advantage is not as appealing to consumers as it once was.

The average American home is as busy as ever, but more and more people are looking for fresh, natural, and healthy in addition to speed and ease of preparation. Kraft and Heinz both represent a pre-packed era that consumers are discarding in favor of more natural and local options. Bolt companies as seen revenues fall as a result.


Adapting The Classics To Regain Consumers
Together as a single company, Kraft and Heinz Co. will have revenue of roughly $28 billion to reinvent, adapt and update their many products to appeal to this new food savvy consumer.  Beyond condiments and boxed dinners, the company will have everything from cream cheese and jarred pickles to veggie burgers and baking chocolate to possibly reinvent.

In Search Of New Brands
It’s also been reported that the merger would result in $1.5 billion in cost savings over the next two years. Those savings could be put towards acquisition of new companies and brands that align with this new wave of consumer tastes and still allow the company to produce the classic products many shoppers are accustom to and will always seek to purchase.


Do you think the merger of Kraft and Heinz is a smart approach to rebuilding and rebranding the company and their many products? Will we see more major food company mergers as a result of changing consumer trends? Tell us your thoughts and if your company been affected by them in the comments.

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